MURFREESBORO — Fast-growing Rutherford County should increase development taxes or construction-permit fees to help fund government services such adding a building inspector, officials said.

"I would like to know what we can do in terms of trying to raise some funds," County Commissioner Mike Kusch said Tuesday night during a Public Works and Planning Committee meeting.

Kusch joined fellow Commissioners Steve Pearcy and Phil Todd in suggesting that more revenues are needed from development taxes and construction permits to help provide government services for a county that reached a U.S. Census estimated population of 288,906 in 2014. The county is projected to increase to 489,827 residents by 2035, according to the Tennessee Data Center,which is part of the University of Tennessee's Center for Business & Economic Research at the Knoxville campus.

Steve Pearcy(Photo: Submitted)

"Land taxes cannot continue to support the growth," said Pearcy, who joined the majority of the County Commission in a 14-7 vote this past June to increase property taxes this fiscal year by 7.8 percent for the county's schools to cover the cost of raises, computers for state-mandated standardized tests and other needs.

The discussion about the need for revenues came up when County Building Codes Director David Jones presented a budget request that seeks to add a building inspector and two trucks. The proposed $1 million-plus budget for a fiscal year that starts July 1 would be a 19.5 percent increase from the current $853,921 budget.

"We're doing a lot more inspections," Jones told the committee.

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David Jones(Photo: DNJ file photo)

Jones oversees a staff of 12. He had a peak of 15 employees in 2009 when the Great Recession hit, but Jones responded to a decision by County Mayor Ernest Burgess to eliminate open jobs for non-emergency workers because revenues were on decline at that time.

The county issued 1,962 construction permits in 2009 prior to issuing 3,300 in 2007 before the recession. Demand for construction permits has picked up in recent years and climbed to 2,744 in 2015, including 620 for single-family dwellings, Jones reported.

Commissioners asked Jones if his permit fees should be increased.

Jones said the county has used the same fee schedule on permits for 10 years since adopting the 2006 International Building Code standards. He agreed to examine whether possible fee increases should be considered to help pay for the operation of his department.

A building codes staff member for 28 years, including 25 years as the director, Jones said he could only recall the fees increasing twice, maybe three times, during his career.

In the previous fiscal year, the Building Codes Department spent $822,731 while collecting $800,284 in revenues, said Jones, noting his department spent $22,447 more than they collected.

Budget increase

The budget request from the Building Codes director seeks $166,473 more to operate next fiscal year. About $39,000 of the increase covers the pay and benefits of the building inspector. The two trucks would cost a total of $50,000, and they're needed to replace an aging vehicle and to have enough vehicles after adding an inspector. The rest of the budget increase would cover cost-of-living raises and employee health insurance premiums that are expected to go up, Jones said.

Commissioners David Nipper and Pearcy said they supported budget request from Jones that will be examined further as the elected officials consider tax and spending plans for the next fiscal year that begins July 1.

"He needs the person," Nipper said. "He needs the vehicles."

David Nipper(Photo: Submitted)

Commissioner Robert Stevens questioned whether it is possible to use the development tax that collects $1,500 per new home to pay for the trucks.

Mayor Burgess said the development tax could be used on vehicles, including $1 million per year to update patrol trucks for the Sheriff's Office.

After Commissioners Dodd, Pearcy and Kusch questioned if development taxes could be increased, Mayor Burgess told them that he doubts that the Tennessee General Assembly would be willing to approve a hike.